Question: A production facility is trying to determine the best batch size for an item that is produced intermittently. This item has an annual demand of
A production facility is trying to determine the best batch size for an item that is produced intermittently. This item has an annual demand of
units an annual carrying cost of $
per unit, and a setup cost of $
They operate
weeks per year, and can produce
units per week. What is the best batch size for this item?
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